China Securities Regulatory Commission (CSRC) has approved 37 retail funds to help in reviving stock market that has been sinking as the nation’s economic recovery stalls and problems in the real estate sector worsen, reported Reuters.
The approval follows several measures proposed for market stabilistion, including a reduction in stamp duty, a slower rate of initial public offerings, and lowered margin financing requirements.
Expected to help guide fresh investment into the market, the new approved funds include 10 exchange-traded funds (ETFs) to track the small-cap CSI 2000 Index and seven tech-focused ETFs.
The remaining products are ‘innovative’ mutual funds, which for the first-time charge investors floating fees that are based on the size, performance, or holding term of the fund.
The regulator is considering fast-tracking approvals for ETF, and guide asset managers to reduce management and trading fees as well as several other market-friendly measures.
Earlier this month, Reuters reported that the China’s securities regulator unveiled several measures to help revive the stock market.
To support stock market that has fallen to nine-month lows, the regulator suggested measures including promoting share buybacks and encouraging long-term investment.
The official China Securities Journal was cited by the news agency as saying in an editorial that the recent support measures underline determination of the authorities to stabilise the country’s capital market.
The editorial said: “A vibrant capital market is key to stabilising people’s expectations and increasing confidence Policymakers’ resolve to revive the market and boost confidence must not be underestimated.”